GITNUXREPORT 2026

Mortgage Refinance Industry Statistics

The refinance industry saw a brief boom before plunging due to soaring interest rates.

Rajesh Patel

Team Lead & Senior Researcher with over 15 years of experience in market research and data analytics.

First published: Feb 13, 2026

Our Commitment to Accuracy

Rigorous fact-checking · Reputable sources · Regular updatesLearn more

Statistic 1

Homeowners aged 35-44 comprised 38% of refinance borrowers in 2021, seeking rate drops

Statistic 2

62% of 2021 refinancers were millennials with home equity over 20%

Statistic 3

Repeat refinancers made up 25% of 2021 volume, averaging 740 FICO scores

Statistic 4

Female-headed households refinanced at 15% higher rate than male in 2022 equity boom

Statistic 5

Borrowers in suburbs accounted for 55% of refi apps in 2021 vs 25% urban

Statistic 6

Average refinance borrower LTV was 65% in 2023, up from 55% in low-rate 2021

Statistic 7

45% of cash-out refinancers were aged 55+ tapping $100k+ equity in 2022

Statistic 8

First-time homeowners refinanced 12% of their loans in 2021, double 2019 rate

Statistic 9

Hispanic borrowers increased refi share to 14% in 2021 from 9% pre-pandemic

Statistic 10

Self-employed refinancers grew to 22% of apps in 2023 with alternative income docs

Statistic 11

Borrowers with DTI over 43% comprised 28% of approved refis in 2022

Statistic 12

Retirees aged 65+ did 8% of cash-out refis in 2023 for debt consolidation

Statistic 13

College-educated borrowers refinanced at 1.8x rate of non-college in 2021

Statistic 14

Midwest borrowers had highest refi rate per capita at 22% in 2021

Statistic 15

The average 30-year fixed refinance rate was 2.65% in January 2021, the lowest on record since 1971

Statistic 16

Refinance rates averaged 5.25% in Q4 2023, 250 basis points above 2021 lows

Statistic 17

Borrowers saved $150 billion in interest payments via refinancing in 2021 at sub-3% rates

Statistic 18

The 15-year fixed refinance rate dipped to 2.09% in early 2021, enabling 40% equity extraction

Statistic 19

ARM refinance rates averaged 3.8% in 2023, attracting 15% of refinancers seeking lower payments

Statistic 20

Rate-and-term refinancers needed 0.75% rate drop incentive on average in 2022

Statistic 21

Jumbo refinance rates were 0.45% higher than conforming in 2023 averaging 6.1%

Statistic 22

Cash-out refi rates carried 0.25% premium over rate-term in 2021 at 2.9% average

Statistic 23

FHA refinance rates averaged 3.1% in 2021, 20 bps below conventional

Statistic 24

VA refinance rates hit 2.5% IRRRL average in 2021, no appraisal required

Statistic 25

Refinance discount points averaged 0.8 in 2023 to buy down rates by 0.25%

Statistic 26

Closing costs for refinances averaged $5,200 in 2023, 2.3% of loan amount

Statistic 27

Break-even period for refinance averaged 2.5 years at 2021 low rates

Statistic 28

5/1 ARM refi share rose to 12% in 2023 from 4% in 2021 as fixed rates climbed

Statistic 29

Refinance APR spread over contract rate was 0.18% in Q3 2023

Statistic 30

Borrowers with 760+ FICO saved 0.35% lower rates on refi vs sub-700 in 2022

Statistic 31

In 2022, the total mortgage refinance volume in the US reached $2.7 trillion, representing 45% of all mortgage originations that year

Statistic 32

The mortgage refinance market size was valued at $1.8 trillion in 2021, growing at a CAGR of 12.5% from 2017 to 2021 due to historically low interest rates

Statistic 33

Refinance originations accounted for 68% of total mortgage originations in Q3 2021, the highest quarterly share since 2003

Statistic 34

The global mortgage refinance market is projected to grow from $5.2 trillion in 2023 to $7.8 trillion by 2030 at a CAGR of 6.1%

Statistic 35

US refinance lending volume dropped 83% year-over-year in 2023 to $428 billion, the lowest since 1990s tracking began

Statistic 36

In 2020, refinance activity surged to $3.1 trillion, comprising 52% of the $5.9 trillion total mortgage market

Statistic 37

The refinance share of mortgage applications peaked at 79% in January 2021 before declining to 32% by end-2023

Statistic 38

Institutional investors held 28% of the refinance mortgage-backed securities market in 2022 valued at $750 billion

Statistic 39

Refinance loan production in Q4 2022 totaled $312 billion, down 62% from Q4 2021

Statistic 40

The US cash-out refinance segment within the market reached $195 billion in 2023, up 15% YoY

Statistic 41

Rate-term refinance volume was $1.2 trillion in 2021, representing 65% of total refinances

Statistic 42

Jumbo refinance loans over $1 million totaled $45 billion in 2022, 12% of high-balance refinances

Statistic 43

FHA refinance volume hit $250 billion in 2021, driven by streamline programs

Statistic 44

VA IRRRL refinances accounted for 22% of VA loans refinanced in 2022, totaling $180 billion

Statistic 45

The refinance market contraction in 2023 led to a 75% drop in originations to under $500 billion annually

Statistic 46

GSEs (Fannie Mae and Freddie Mac) backed 55% of refinance loans in 2022, amounting to $1.5 trillion

Statistic 47

Non-agency refinance securitizations reached $120 billion in 2021 peak

Statistic 48

Refinance applications spiked 500% in early 2021 compared to 2020 baseline

Statistic 49

Weekly refinance applications fell 45% in the week ending January 2024 to the lowest since 1996

Statistic 50

Cash-out refinance applications increased 18% YoY in Q3 2023, comprising 60% of total refi apps

Statistic 51

Total refinance applications in 2021 averaged 150,000 per week, up from 25,000 in 2020

Statistic 52

Refinance share of applications dropped to 0.4% seasonally adjusted in late 2023, near record lows

Statistic 53

FHA streamline refinance applications surged 300% in 2021 to over 1 million loans

Statistic 54

VA refinance applications peaked at 45,000 per week in March 2021

Statistic 55

Purchase-refi spread in applications widened to 95% purchase in Q4 2023 from 20% in 2021

Statistic 56

Serial refinancers completed 2.5 refinances on average per borrower in 2020-2022 boom

Statistic 57

Online refinance applications grew to 42% of total in 2023 from 28% in 2019

Statistic 58

Refinance pull-through rate averaged 65% in 2021, dropping to 45% in high-rate 2023

Statistic 59

Texas led refinance applications with 8.5% market share in 2022 due to no-income refi programs

Statistic 60

California refinance volume totaled $450 billion in 2021, 18% of national total

Statistic 61

Florida saw 1.2 million refinance applications in 2021, up 450% YoY

Statistic 62

Dodd-Frank Act reduced refi denial rates for subprime borrowers by 15% post-2014

Statistic 63

Fed rate hikes from 0.25% to 5.5% in 2022-2023 caused 80% drop in refi activity

Statistic 64

CARES Act forbearance allowed 4 million refis indirectly via payment relief in 2020

Statistic 65

QM rule amendments in 2021 boosted refi access for non-QM loans by 20%

Statistic 66

Inflation Reduction Act indirectly supported green refinances with $10k tax credits in 2023

Statistic 67

TRID rule implementation cut refi closing times by 10 days on average since 2015

Statistic 68

GSE pricing adjustments in 2022 added 0.125% to refi rates for high-LTV loans

Statistic 69

COVID-19 stimulus checks enabled 500k extra refis by boosting savings for closing costs

Statistic 70

Basel III capital rules increased lender refi margins by 15 bps in 2023

Statistic 71

Homeowner equity gains of $28 trillion since 2020 fueled $1 trillion cash-out refis

Statistic 72

Unemployment rate drop to 3.5% in 2023 supported 10% higher refi approvals

Statistic 73

Housing inventory shortage of 4 million units propped refi equity by 35% since 2019

Statistic 74

GDP growth slowdown to 1.6% in Q3 2023 correlated with 20% refi app decline

1/74

Sources

Trusted by 500+ publications

+497

Imagine a market where homeowners collectively refinanced a staggering $2.7 trillion in loans in a single year, a tidal wave of activity driven by record-low rates that has since receded into a complex and evolving landscape of opportunity.

Key Takeaways

In 2022, the total mortgage refinance volume in the US reached $2.7 trillion, representing 45% of all mortgage originations that year
The mortgage refinance market size was valued at $1.8 trillion in 2021, growing at a CAGR of 12.5% from 2017 to 2021 due to historically low interest rates
Refinance originations accounted for 68% of total mortgage originations in Q3 2021, the highest quarterly share since 2003
Refinance applications spiked 500% in early 2021 compared to 2020 baseline
Weekly refinance applications fell 45% in the week ending January 2024 to the lowest since 1996
Cash-out refinance applications increased 18% YoY in Q3 2023, comprising 60% of total refi apps
The average 30-year fixed refinance rate was 2.65% in January 2021, the lowest on record since 1971
Refinance rates averaged 5.25% in Q4 2023, 250 basis points above 2021 lows
Borrowers saved $150 billion in interest payments via refinancing in 2021 at sub-3% rates
Homeowners aged 35-44 comprised 38% of refinance borrowers in 2021, seeking rate drops
62% of 2021 refinancers were millennials with home equity over 20%
Repeat refinancers made up 25% of 2021 volume, averaging 740 FICO scores
Dodd-Frank Act reduced refi denial rates for subprime borrowers by 15% post-2014
Fed rate hikes from 0.25% to 5.5% in 2022-2023 caused 80% drop in refi activity
CARES Act forbearance allowed 4 million refis indirectly via payment relief in 2020

The refinance industry saw a brief boom before plunging due to soaring interest rates.

Borrower Profiles and Demographics

Homeowners aged 35-44 comprised 38% of refinance borrowers in 2021, seeking rate drops
62% of 2021 refinancers were millennials with home equity over 20%
Repeat refinancers made up 25% of 2021 volume, averaging 740 FICO scores
Female-headed households refinanced at 15% higher rate than male in 2022 equity boom
Borrowers in suburbs accounted for 55% of refi apps in 2021 vs 25% urban
Average refinance borrower LTV was 65% in 2023, up from 55% in low-rate 2021
45% of cash-out refinancers were aged 55+ tapping $100k+ equity in 2022
First-time homeowners refinanced 12% of their loans in 2021, double 2019 rate
Hispanic borrowers increased refi share to 14% in 2021 from 9% pre-pandemic
Self-employed refinancers grew to 22% of apps in 2023 with alternative income docs
Borrowers with DTI over 43% comprised 28% of approved refis in 2022
Retirees aged 65+ did 8% of cash-out refis in 2023 for debt consolidation
College-educated borrowers refinanced at 1.8x rate of non-college in 2021
Midwest borrowers had highest refi rate per capita at 22% in 2021

Borrower Profiles and Demographics Interpretation

The refinance wave of the early 2020s was a demographic ballet, where equity-rich millennials pirouetted with rate-chasing Gen Xers, cautious retirees took a cautious bow, and everyone, from the suburbs to the self-employed, lined up for their piece of the low-rate pie.

Interest Rates and Pricing

The average 30-year fixed refinance rate was 2.65% in January 2021, the lowest on record since 1971
Refinance rates averaged 5.25% in Q4 2023, 250 basis points above 2021 lows
Borrowers saved $150 billion in interest payments via refinancing in 2021 at sub-3% rates
The 15-year fixed refinance rate dipped to 2.09% in early 2021, enabling 40% equity extraction
ARM refinance rates averaged 3.8% in 2023, attracting 15% of refinancers seeking lower payments
Rate-and-term refinancers needed 0.75% rate drop incentive on average in 2022
Jumbo refinance rates were 0.45% higher than conforming in 2023 averaging 6.1%
Cash-out refi rates carried 0.25% premium over rate-term in 2021 at 2.9% average
FHA refinance rates averaged 3.1% in 2021, 20 bps below conventional
VA refinance rates hit 2.5% IRRRL average in 2021, no appraisal required
Refinance discount points averaged 0.8 in 2023 to buy down rates by 0.25%
Closing costs for refinances averaged $5,200 in 2023, 2.3% of loan amount
Break-even period for refinance averaged 2.5 years at 2021 low rates
5/1 ARM refi share rose to 12% in 2023 from 4% in 2021 as fixed rates climbed
Refinance APR spread over contract rate was 0.18% in Q3 2023
Borrowers with 760+ FICO saved 0.35% lower rates on refi vs sub-700 in 2022

Interest Rates and Pricing Interpretation

The mortgage refinance rodeo saw borrowers lasso historically low rates for massive savings in 2021, only to watch that bull market buck them back into a far pricier corral by 2023, where every discount now comes with its own carefully measured price tag.

Market Size and Growth

In 2022, the total mortgage refinance volume in the US reached $2.7 trillion, representing 45% of all mortgage originations that year
The mortgage refinance market size was valued at $1.8 trillion in 2021, growing at a CAGR of 12.5% from 2017 to 2021 due to historically low interest rates
Refinance originations accounted for 68% of total mortgage originations in Q3 2021, the highest quarterly share since 2003
The global mortgage refinance market is projected to grow from $5.2 trillion in 2023 to $7.8 trillion by 2030 at a CAGR of 6.1%
US refinance lending volume dropped 83% year-over-year in 2023 to $428 billion, the lowest since 1990s tracking began
In 2020, refinance activity surged to $3.1 trillion, comprising 52% of the $5.9 trillion total mortgage market
The refinance share of mortgage applications peaked at 79% in January 2021 before declining to 32% by end-2023
Institutional investors held 28% of the refinance mortgage-backed securities market in 2022 valued at $750 billion
Refinance loan production in Q4 2022 totaled $312 billion, down 62% from Q4 2021
The US cash-out refinance segment within the market reached $195 billion in 2023, up 15% YoY
Rate-term refinance volume was $1.2 trillion in 2021, representing 65% of total refinances
Jumbo refinance loans over $1 million totaled $45 billion in 2022, 12% of high-balance refinances
FHA refinance volume hit $250 billion in 2021, driven by streamline programs
VA IRRRL refinances accounted for 22% of VA loans refinanced in 2022, totaling $180 billion
The refinance market contraction in 2023 led to a 75% drop in originations to under $500 billion annually
GSEs (Fannie Mae and Freddie Mac) backed 55% of refinance loans in 2022, amounting to $1.5 trillion
Non-agency refinance securitizations reached $120 billion in 2021 peak

Market Size and Growth Interpretation

The refinance market, much like a homeowner chasing falling interest rates, experienced a dizzying high followed by a record-breaking hangover, proving that what goes down must eventually come up—in rate, that is.

Refinance Volumes and Applications

Refinance applications spiked 500% in early 2021 compared to 2020 baseline
Weekly refinance applications fell 45% in the week ending January 2024 to the lowest since 1996
Cash-out refinance applications increased 18% YoY in Q3 2023, comprising 60% of total refi apps
Total refinance applications in 2021 averaged 150,000 per week, up from 25,000 in 2020
Refinance share of applications dropped to 0.4% seasonally adjusted in late 2023, near record lows
FHA streamline refinance applications surged 300% in 2021 to over 1 million loans
VA refinance applications peaked at 45,000 per week in March 2021
Purchase-refi spread in applications widened to 95% purchase in Q4 2023 from 20% in 2021
Serial refinancers completed 2.5 refinances on average per borrower in 2020-2022 boom
Online refinance applications grew to 42% of total in 2023 from 28% in 2019
Refinance pull-through rate averaged 65% in 2021, dropping to 45% in high-rate 2023
Texas led refinance applications with 8.5% market share in 2022 due to no-income refi programs
California refinance volume totaled $450 billion in 2021, 18% of national total
Florida saw 1.2 million refinance applications in 2021, up 450% YoY

Refinance Volumes and Applications Interpretation

The homeowner's insatiable thirst for cheap money turned into a fiscal hangover so severe that the once-roaring refi party has now dwindled to a near-historic whisper, with cash-out loans being the last, desperate sip at the bar.

Regulatory and Economic Influences

Dodd-Frank Act reduced refi denial rates for subprime borrowers by 15% post-2014
Fed rate hikes from 0.25% to 5.5% in 2022-2023 caused 80% drop in refi activity
CARES Act forbearance allowed 4 million refis indirectly via payment relief in 2020
QM rule amendments in 2021 boosted refi access for non-QM loans by 20%
Inflation Reduction Act indirectly supported green refinances with $10k tax credits in 2023
TRID rule implementation cut refi closing times by 10 days on average since 2015
GSE pricing adjustments in 2022 added 0.125% to refi rates for high-LTV loans
COVID-19 stimulus checks enabled 500k extra refis by boosting savings for closing costs
Basel III capital rules increased lender refi margins by 15 bps in 2023
Homeowner equity gains of $28 trillion since 2020 fueled $1 trillion cash-out refis
Unemployment rate drop to 3.5% in 2023 supported 10% higher refi approvals
Housing inventory shortage of 4 million units propped refi equity by 35% since 2019
GDP growth slowdown to 1.6% in Q3 2023 correlated with 20% refi app decline

Regulatory and Economic Influences Interpretation

The mortgage refinance industry has become a surprisingly revealing cocktail party, where government policy, economic shifts, and homeowner desperation mix to show that while you can't always get the rate you want, regulators and recessions will certainly help you get the loan you didn't think you could afford.

Sources & References

Logos provided by Logo.dev